Africa, the economic crisis, and international economic governance

摘要

The turmoil in the developed economies has hit the developing world hard. Export earnings have tumbled. African countries have again seen their terms of trade worsen, and cannot depend for high growth on conditions in the developed world. The development strategy of the African countries then has to rely either on investments by the domestic private sector or increased demand from other developing countries. The former requires infrastructure investment by governments and policies that raise the profitability of private investment. Infrastructure investments, because of budgetary constraints, require support from international institutions. Negotiations could further enhance South-South trade and financial flows. For instance, Indian imports of foodgrains have risen, but agricultural productivity must rise for an increase in African exports to India. This requires African countries and their developing country allies to press in the G20 and other fora that research encouraged by such entities as the Consultative Group for International Agricultural Research benefit more African countries.